Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,100. The BAJ Division's divisional segment margin is $83,100 and the CBB Division's divisional segment margin is $47,900. What is the amount of the common fixed expense not traceable to the individual divisions? a. $95,200 b. $118,900 c. $60,000 d. $131,000 If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $30, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio? a. $30 per passenger, 75% b. $30 per passenger, 25% c. $10 per passenger, 75% d. $10 per passenger, 25%
Brummitt Corporation has two divisions: the BAJ Division and the CBB Division. The corporation's net operating income is $12,100. The BAJ Division's divisional segment margin is $83,100 and the CBB Division's divisional segment margin is $47,900. What is the amount of the common fixed expense not traceable to the individual divisions? a. $95,200 b. $118,900 c. $60,000 d. $131,000 If Interval Railway's fixed costs total $40,000 per month, the variable cost per passenger is $30, and tickets sell for $40, what is the contribution margin per unit and contribution margin ratio? a. $30 per passenger, 75% b. $30 per passenger, 25% c. $10 per passenger, 75% d. $10 per passenger, 25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brummitt Corporation has two divisions: the BAJ Division
and the CBB Division. The corporation's net operating
income is $12,100. The BAJ Division's divisional segment
margin is $83,100 and the CBB Division's divisional
segment margin is $47,900. What is the amount of the
common fixed expense not traceable to the individual
divisions?
a. $95,200
b. $118,900
c. $60,000
d. $131,000
If Interval Railway's fixed costs total $40,000 per
month, the variable cost per passenger is $30, and
tickets sell for $40, what is the contribution margin per
unit and contribution margin ratio?
a. $30 per passenger, 75%
b. $30 per passenger, 25%
c. $10 per passenger, 75%
d. $10 per passenger, 25%
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